Keighley Maxted & Co. v. Durant
By Vivek Kumar Verma / January 19, 2012 / Agency, Contract Law  AC 240
K & Co authorized Roberts, a corn merchant, to buy wheat on a joint account for himself and them at a certain price. Roberts, on his own behalf and without authority of anybody else, bought wheat at a higher price than the authorized one, from Durant. The intention that he was acting for K& Co. as well as himself was not disclosed by Roberts to Durant. K & Co, however, later agreed with Roberts to buy the wheat at that (high) price but eventually failed to do so. Durant resold it at a loss and sued them for loss. Durant – Plaintiff at court of 1st instance
Roberts – appellant in Court of appeal, respondent in House of Lords. K & Co – appellant in House of Lords.
Whether a contract made by a man purporting and professing to act on his own behalf alone, and not on behalf of a principal, but having an undisclosed intention to give the benefit of the contract to a third party, can be ratified by that third party, so as to render him able to sue or liable to be sued on the contract. Judgement
Day J. and a special jury (...